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How do I close out my account?

I am getting ready to retire

Jan 13, 2013 by Darrell from Advance, MO in  |  Flag
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Darrell, when you separate from your employer they will provide you a packet that provides retirement asset options to determine whether you want to close out and receive all your money or rollover into an IRA. Otherwise, contact your Human Resource Dept. or retirement plan administrator to initiate your request. Be aware that taxes may apply if you elect distribution.

Comment   |  Flag   |  Jan 13, 2013 from Denver, CO

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Peter C. Karp Level 20

Darrell, It is not closing the account that should be the focus.... The focus is what are your long term financial goals and income needs. The retirement plan is traditionally the main asset in order to generate income in retirement along with social security payments. Whether you should close it and pay the taxes, keep it at your previous employer or roll it to an IRRA is an important decision. You need to talk to a financial advisor that has an open platform that can truly advisor you without a bias. Once you have the planning in place and you know all the options, "closing the account" is academic. If you decide to take a distribution, you will need to contact your employer and complete the appropriate distribution paperwork to begin the process.

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Comment   |  Flag   |  Jan 15, 2013 from San Francisco, CA

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Darrell, if you really want to close out your account, you would contact your HR department and get the phone number for the plan administrator. So long as you are separated from the company and over age 55, you can withdraw your entire account balance without penalty. Your distribution will still be taxed as ordinary income.

If you are actually asking if you can rollover your money out of your company’s 401(k) into an IRA, that is a little different.

You can open an IRA account with a provider of your choosing. I recommend you consult with a local financial advisor. You can interview several, but you don’t need a make a career of it. Ask questions and select one you feel comfortable with. You will likely need to get HR to sign a ‘distribution form’ so that your assets will be released to your new IRA

Comment   |  Flag   |  Jan 31, 2013 from Delray Beach, FL

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